Building Loyalty, One Payment at a Time with GC-Led Early Pay

By and far, the biggest challenge we hear about in the construction industry is cash flow. To drive this point home, a recent survey one of our GC partners ran with their Trade Partners revealed that over 80% of them expressed strong interest in an Early Pay Program (EPP). That's a clear signal that there's a real appetite to improve how payments are handled in our industry.

With EPP, Constrafor has built a robust financing option for subcontractors that helps them free up cash flow, take on more work, and reduce the overall risk for each project. By partnering with GCs, we’re able to continue strengthening the relationships you’ve built with subcontractors and bolster the success of projects. Because at its core, a GC-led EPP is about more than just accelerating payments—it's about looking out for your trade partners and building a more resilient construction ecosystem. 

By offering an Early Pay service, GCs benefit:

1. Build stronger relationships: EPPs demonstrate a commitment to the financial health of your Subs—fostering trust and loyalty with the subcontractors you’ve built relationships with.
2. Improve Project Outcomes: Better cash flow for subcontractors often translates to improved performance and reduced delays.
3. Gain Competitive Advantage: Offering EPP can differentiate a GC in a crowded market, attracting top-tier subcontractors.

Ready to take the next step? Book a meeting now to learn more about offering Constrafor EPP to your subcontractors.

When does it make sense to offer an Early Pay Program?

Some GCs have been able to leverage their own balance sheets to accelerate payments or finance materials on a case-by-case basis. Larger firms, like Turner Construction, have the annual revenue necessary to implement their own invoice financing programs. But this approach isn't feasible for most GCs because of the capital constraints and complexities involved to develop these programs. 

You've probably tried a few things to ease the cash crunch to your Trade Partners:

• Paying approved invoices faster
• Paying for materials, supplies, or equipment upfront
• Maybe even setting up your own financing program

At the end of the day though, these solutions not only put a strain on your finances; they bog down your productivity. While traditional invoice factoring deserves its poor reputation in the construction industry, the underlying financial mechanics are sound—and place zero burden on a GC’s finances when done correctly.

Constrafor’s Early Pay Program was specifically developed to help both GCs and trade partners improve their financial relationships. Subcontractors are able to grow and you’re able to reduce risk for everyone involved.

A rising tide lifts all boats

By partnering with Constrafor, GCs are able to leverage their collective bargaining power to negotiate a favorable invoice rate for their subcontractors. In other words, GCs utilize their scale and superior balance sheet to negotiate a lower financing rate than their Subs could obtain on their own. 

Constrafor then pays your subcontractors in as little as 24 hours after the invoice is approved, minus the negotiated fee.

When a GC opts into the program and agrees on a rate, they commit to paying Constrafor the full value of approved invoices, regardless of potential offsets. In return, Constrafor not only funds the invoice but also provides the GC with a rebate on SDI premiums. This approach effectively closes the loop on subcontractor default risk.

Taking the next step

Implementing an Early Pay Program with Constrafor is more than just a financial decision—it's a strategic move that strengthens your entire construction community. Plus, you’re gaining a significant competitive edge by offering accelerated payments to subcontractors. And with Constrafor managing the complexities, you can offer this valuable service without straining your resources. 

It's time to transform your payment processes and set up your projects—and your subcontractors—for more success.

Book a meeting now to learn more about offering Constrafor EPP to your Trade Partners!